FDIC Insured Commercial Banks Quarterly Net Income and Margins Quarterly

FDIC-Insured Commercial Banks Quarterly Net Income and Margins Quarterly Return on Assets and Equity Quarterly Return on Risk-Weighted Assets Quarterly Efficiency Ratios Noninterest Income as a Percentage of Net Operating Revenue Composition of Noninterest Income Changes in Number of FDIC-Insured Commercial Banks Bank Mergers: Interstate vs. Intrastate Capital Ratios Utilization Rates of Loan Commitments Loan Portfolio Composition Loan Portfolio Composition by Asset Size Noncurrent Loan and Quarterly Net Charge-off Rates Noncurrent Loan and Quarterly Net Charge-off Rates on C&I Loans Reserve Coverage Ratio Loan Quality Credit Quality of C&I Loans Credit Card Loss Rates and Personal Bankruptcy Filings Credit Card Loss Rates and Personal Bankruptcy Filings Table Expansion of Credit Card Lines Total Securities by Category Real Estate Assets by Type Number and Amount of Banks with FHLB Advances Debt Securities by Maturity and Region and Total Securities (Debt and Equity) Net Loans and Leases to Deposits Commercial and Industrial Loans to Small Businesses Credit Risk Diversification Quarterly Change in Loans Outstanding and Unused Loan Commitments Derivatives Concentration and Composition of Derivatives Purpose of Derivatives Positions of Derivatives 30 31 32 28 29 26 27 24 25 23 19 20 21 22 18 14 15 16 17 13 7 8 9 10 11 12 5 6 3 4 1 2 Return on Assets by State 33 FDIC-Insured Savings Institutions Noninterest Income as a Percentage of Net Operating Revenue Quarterly Return on Assets and Equity Quarterly Return on Risk-Weighted Assets Quarterly Efficiency Ratios Noncurrent Loan Rates by State Changes in Number of FDIC-Insured Savings Institutions Return on Assets by Asset Size Noncurrent Loan Rates and Net Charge-off Rates Loan Quality Noncurrent Real Estate Loans by Type Noncurrent Real Estate Loans by Region Loan Utilization Rates Total Securities by Category Real Estate Assets by Type Number and Amount of Institutions with FHLB Advances Assets and Number of Mutual and Stock Savings Institutions Return on Assets by State 48 49 47 41 42 43 43 44 45 46 39 40 36 37 38 34 35 All FDIC-Insured Institutions Number and Assets of FDIC-Insured Banking Organizations Number and Assets of FDIC-Insured Institutions 51 50 Credit Risk Diversification 53 Capital Category Distribution Total Liabilities and Equity Capital Insurance Fund Reserve Ratios and Insured Deposits U.S. Treasury Yield Curve 55 56 57 58 59 Notes to Users Quarterly Net Income 1998 - 2002 $ Billions Net Operating Income Securities and Other Gains/Losses, Net 30 23.4 21.7 20 15.9 16.1 15.1 14.8 19.4 18.0 16.9 17.7 14.6 19.5 19.3 17.6 19.8 19.1 17.4 18.5 10 -2 1 2 3 1998 4 1 2 3 1999 4 1 2 3 2000 4 1 2 3 2001 4 1 2 2002 Quarterly Net Interest Margins, Annualized 1998 - 2002 Net Interest Margin (%) 5.0 Assets > $100 Million Assets < $100 Million 4.40 4.5 4.0 4.10 3.5 1 2 3 1998 4 1 2 3 1999 4 1 2 3 2000 4 1 2 3 2001 4 1 2 2002 FDIC Quarterly Banking Profile Second Quarter 2002 1 FDIC-Insured Commercial Banks Quarterly Return on Assets (ROA), Annualized ROA % 1.6 1993 - 2002 1.4 1.2 1.0 0.8 0.6 0.4 0.2 5 Highest Values Jun 2002 Sep 1999 Mar 2000 Mar 2002 Mar 1999 1.41 1.41 1.35 1.33 1.32 0.0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Quarterly Return on Equity (ROE), Annualized ROE % 20 1993 - 2002 15 10 5 5 Highest Values Sep 1999 Sep 1995 Sep 1993 Mar 1993 Mar 2000 16.57 16.31 16.13 16.10 16.04 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 FDIC Quarterly Banking Profile Second Quarter 2002 2 FDIC-Insured Commercial Banks Quarterly Return on Risk-Weighted Assets (RWA)* and RWA to Total Assets 1995 - 2002 Return on RWA(%) 3.0 RWA to Assets(%) 85 Risk-Weighted Assets to Assets 2.7 2.4 76.0 75 2.1 1.8 1.8 65 1.5 1.2 Return on Risk-Weighted Assets 0.9 1995 1996 1997 1998 1999 2000 2001 2002 55 * Assets weighted according to risk categories used in regulatory capital computations. FDIC Quarterly Banking Profile Second Quarter 2002 3 FDIC-Insured Commercial Banks Quarterly Efficiency Ratios* 1999 - 2002 Efficiency Ratio (%) Assets<$1 Billion 68 63 58 53 Assets>$1 Billion 1999 Assets<$1 Billion Assets>$1 Billion Total 62.61 57.59 58.42 62.83 59.07 59.71 62.22 55.28 56.43 64.95 59.29 60.22 62.41 55.76 56.82 2000 61.06 61.54 61.46 61.67 56.30 57.14 64.60 57.29 58.40 63.85 57.01 58.01 2001 63.90 56.67 57.74 63.07 57.65 58.46 64.92 54.87 56.33 63.53 53.71 55.08 2002 62.64 53.79 55.04 *Noninterest expenses less amortization of intangible assets as a percent of net interest income plus noninterest income. FDIC Quarterly Banking Profile Second Quarter 2002 4 FDIC-Insured Commercial Banks Noninterest Income as a Percentage of Net Operating Revenue* 1994 - 2002 Quarterly Noninterest Income, % of net Operating Revenue* 50 44.6 40 Assets>$1 Billion 30 26.0 Assets<$1 Billion 20 10 1994 1995 1996 1997 1998 1999 2000 2001 2002 Trends in Commerical Bank Income & Expenses 1994 - 2002 % of Net Operating Revenue* 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Noninterest Expense Noninterest Income Loss Provision 1994 1995 1996 1997 1998 1999 2000 2001 2002 *Net operating revenue equals net interest income plus total noninterest income. FDIC Quarterly Banking Profile Second Quarter 2002 5 FDIC-Insured Commercial Banks Composition of Noninterest Income First Half 2002 Service Charges on Deposit Accounts 17.2% Trading Gains & Fees 7.7% Investment Banking/Brokerage Fees 5.6% Fiduciary Income 12.6% Net Servicing Fees 8.3% Net Gains On Asset Sales 3.8% Net Securitization Income 10.9% Insurance Commissions & Fees 2.1% Other Noninterest Income 31.8% Noninterest Income Noninterest Income Source ____________________________________ $ Millions ___________ Number of Banks Reporting Non-Zero Balances ____________________ Percent of All Banks __________ Fiduciary Income Service Charges on Deposit Accounts Trading Gains & Fees Investment Banking/Brokerage Fees Venture Capital Revenue Net Servicing Fees Net Securitization Income Insurance Commissions & Fees Net Gains On Asset Sales Net Gains/Losses On Loan Sales Net Gains/Losses On OREO Sales Net Gains/Losses On Sales Of Other Assets Other Noninterest Income $10,586 $14,498 $6,518 $4,696 -$45 $7,028 $9,213 $1,726 1,565 7,800 149 2,062 48 1,641 81 3,828 19.5% 97.1% 1.9% 25.7% 0.6% 20.4% 1.0% 47.6% $3,206 $15 -$4 $26,745 1,695 1,708 1,688 7,855 21.1% 21.3% 21.0% 97.8% Total Noninterest Income $84,183 7,938 98.8% FDIC Quarterly Banking Profile Second Quarter 2002 6 FDIC-Insured Commercial Banks Changes in the Number of FDIC-Insured Commercial Banks Quarterly, 1998 - 2002 Number of Banks 250 200 150 Mergers 100 New Charters 50 Failures 0 1998 New Charters Mergers Failures Other Changes, Net* No. of banks at end of quarter Net Change during quarter 26 144 0 -2 49 91 1 3 49 124 2 4 65 198 0 -3 62 114 1 1 1999 54 103 1 2 59 109 3 0 55 91 2 -3 56 118 1 -1 2000 51 91 1 1 33 135 2 2 51 109 2 2 32 104 1 -4 2001 30 88 1 -1 30 58 1 -1 37 107 0 2 2002 17 86 6 0 26 66 1 2 9,023 8,983 8,910 8,773 8,722 8,674 8,621 8,579 8,516 8,477 8,375 8,315 8,238 8,178 8,149 8,080 8,005 7,966 -119 -40 -73 -137 -52 -48 -53 -41 -64 -39 -102 -59 -76 -60 -29 -70 -75 -39 * Includes charter conversions, voluntary liquidations, adjustments for open-bank assistance transactions and other changes. FDIC Quarterly Banking Profile Second Quarter 2002 7 FDIC-Insured Commercial Banks Bank Mergers: Interstate vs. Intrastate Quarterly, 1998 - 2002 Number of Banks 150 Intrastate Mergers 100 50 Interstate Mergers 0 1998 1999 2000 2001 2002 Intrastate Mergers Interstate Mergers 98 46 69 22 87 37 132 66 86 28 77 26 82 27 61 30 82 36 62 29 85 50 76 33 79 25 68 20 40 18 69 37 54 32 49 17 FDIC Quarterly Banking Profile Second Quarter 2002 8 FDIC-Insured Commercial Banks Capital Ratios 1996 - 2002 Ratios (%) 14 12 Total Risk-Based Capital Tier 1 Risk-Based Capital 10 Equity to Assets 8 Core Capital (Leverage) 6 1996 1997 1998 1999 2000 2001 2002 12/96 Total Risk-Based Capital Tier 1 Risk-Based Capital Equity to Assets Core Capital (Leverage) 12.53 9.95 8.20 7.64 12/97 12.23 9.59 8.33 7.56 12/98 12.23 9.48 8.49 7.54 12/99 12.16 9.49 8.36 7.79 12/00 12.12 9.41 8.50 7.70 12/01 12.72 9.89 9.09 7.79 6/02 12.95 10.14 9.24 8.00 FDIC Quarterly Banking Profile Second Quarter 2002 9 FDIC-Insured Commercial Banks Utilization Rates of Loan Commitments* 1997-2002 Utilization Rate (%) 100 80 Commercial Real Estate 60 Home Equity 40 Commercial and Industrial 20 Credit Cards** 0 1997 1998 1999 2000 2001 2002 * Utilization rates represent outstanding loan amounts as a percentage of unused loan commmitments plus outstanding loan amounts. ** Includes on-balance-sheet loans and off-balance-sheet securitized receivables. FDIC Quarterly Banking Profile Second Quarter 2002 10 FDIC-Insured Commercial Banks Composition of Commercial Banks' Loan Portfolios June 30, 2002 Commercial Real Estate 13% Credit Cards 6% Residential Mortgages 21% Other Consumer 10% Agriculture 1% Leases 4% Construction 5% Commercial & Industrial 24% All Other Loans 15% FDIC Quarterly Banking Profile Second Quarter 2002 11 FDIC-Insured Commercial Banks Loan Portfolio Composition of Insured Commercial Banks June 30, 2002 Assets < $1 Billion Commercial Real Estate 25% Credit Cards 1% Residential Mortgages 24% Other Consumer 10% Agriculture 5% Leases 1% Construction 8% Commercial & Industrial 17% All Other Loans 10% Assets > $1 Billion Commercial Real Estate 11% Credit Cards 7% Residential Mortgages 20% Other Consumer 11% Agriculture 1% Leases 5% Construction 4% Commercial & Industrial 25% All Other Loans 16% FDIC Quarterly Banking Profile Second Quarter 2002 12 FDIC-Insured Commercial Banks Noncurrent Loan Rates By Asset Size 1992 - 2002 Noncurrent Loan Rate (%) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Assets < $1 Billion Assets > $1 Billion 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Quarterly Net Charge-off Rates By Asset Size 1992 - 2002 Quarterly Net Charge-off (%) 2.5 Assets < $1 Billion Assets > $1 Billion 2.0 1.5 1.0 0.5 0.0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 FDIC Quarterly Banking Profile Second Quarter 2002 13 FDIC-Insured Commercial Banks Noncurrent C&I Loan Rates By Asset Size 1992 - 2002 C&I Noncurrent Loan Rate (%) 6 Assets < $1 Billion Assets > $1 Billion 5 4 3 2 1 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Quarterly Net Charge-off Rates on C&I Loans By Asset Size 1992 - 2002 Quarterly Net Charge-off Rate (%) 4 Assets < $1 Billion Assets > $1 Billion 3 2 1 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 FDIC Quarterly Banking Profile Second Quarter 2002 14 FDIC-Insured Commercial Banks Reserve Coverage Ratio* 1998-2002 $ Billions 100 Coverage Ratio (%) 200 90 180 80 Coverage Ratio (%) 160 70 Loan-Loss Reserves ($) 140 60 120 50 100 40 80 30 60 20 Noncurrent Loans ($) 40 10 3/98 6/98 9/98 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 20 Noncurrent Loans ($ Billions) 29.5 29.1 29.5 31.3 32.2 31.2 33.0 33.0 34.6 36.7 38.9 42.9 46.1 48.7 51.7 55.0 57.1 58.4 Loan-Loss Reserves ($ Billions) 55.2 56.4 57.3 57.3 57.9 57.6 58.4 58.8 59.9 62.0 62.6 64.1 64.7 65.8 68.2 72.4 75.1 74.3 Coverage Ratio (%) 187 194 194 183 180 185 177 178 173 169 161 149 140 135 132 132 131 127 * Loan-loss reserves to noncurrent loans. FDIC Quarterly Banking Profile Second Quarter 2002 15 FDIC-Insured Commercial Banks Loan Quality 1998-2002 Percent of Loans 30-89 Day Past Due Loans 4 2 0 1998 1999 2000 2001 2002 Percent of Loans Noncurrent Loans* 4 2 0 1998 1999 2000 2001 2002 Percent of Loans Quarterly Net Charge-offs (Annualized) 4 2 0 1998 1999 Total Real Estate Loans to Individuals 2000 2001 Commercial and Industrial All Other Loans** 2002 *Loans past due 90 or more days or in nonaccrual status. **Includes loans to foreign governments, depository institutions and lease receivables. FDIC Quarterly Banking Profile Second Quarter 2002 16 FDIC-Insured Commercial Banks Credit Qualtity of Commercial Banks' C&I Loans 1997 - 2002 $ Billions 35 Noncurrent Loans Quarterly Net Charge-offs 31.1 30 4.2 25 20 26.9 15 10 7.4 5 0 1 2 3 1997 4 1 2 3 1998 4 1 2 3 1999 4 1 2 3 2000 4 1 2 3 2001 4 1 2 2002 FDIC Quarterly Banking Profile Second Quarter 2002 17 FDIC-Insured Commercial Banks Credit Card Loss Rates and Personal Bankruptcy Filings 1984-2002 Net Charge-Off Rate (%) 9 Number of Bankruptcy Filings (Thousands) 400 8 Personal Bankruptcy Filings 7 350 300 6 5 250 4 200 3 150 2 Credit Card Charge-Off Rates 100 1 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Sources: Bankruptcies - Administrative Offices of the United States Courts Charge-Off Rates - Commercial Bank Call Reports 50 FDIC Quarterly Banking Profile Second Quarter 2002 18 FDIC-Insured Commercial Banks Credit Card Loss Rates and Personal Bankruptcy Filings 1984 - 2002 Net Charge-Off Date 3/31/84 6/30/84 9/30/84 12/31/84 3/31/85 6/30/85 9/30/85 12/31/85 3/31/86 6/30/86 9/30/86 12/31/86 3/31/87 6/30/87 9/30/87 12/31/87 3/31/88 6/30/88 9/30/88 12/31/88 3/31/89 6/30/89 9/30/89 12/31/89 3/31/90 6/30/90 9/30/90 12/31/90 3/31/91 6/30/91 9/30/91 12/31/91 3/31/92 6/30/92 9/30/92 12/31/92 3/31/93 6/30/93 9/30/93 12/31/93 Rate 1.37 1.48 1.59 1.81 1.98 2.31 2.65 2.95 3.21 3.28 3.35 3.38 3.46 3.37 3.10 3.26 3.18 3.22 3.12 3.17 3.10 3.21 3.01 3.28 3.08 3.34 3.50 3.86 4.16 4.78 4.79 4.64 4.84 4.97 4.31 4.57 4.03 4.02 3.59 3.42 Number of Bankruptcy Filings 71,697 71,955 71,201 69,554 72,887 84,243 87,727 96,376 103,088 114,384 116,037 116,204 116,578 122,689 123,868 127,409 133,712 138,245 136,561 139,215 144,711 157,955 152,696 161,404 166,694 179,943 177,351 193,872 212,913 227,853 214,174 217,160 233,973 232,657 220,021 212,112 206,271 212,982 200,329 192,617 Date 3/31/94 6/30/94 9/30/94 12/31/94 3/31/95 6/30/95 9/30/95 12/31/95 3/31/96 6/30/96 9/30/96 12/31/96 3/31/97 6/30/97 9/30/97 12/31/97 3/31/98 6/30/98 9/30/98 12/31/98 3/31/99 6/30/99 9/30/99 12/31/99 3/31/00 6/30/00 9/30/00 12/31/00 3/31/01 6/30/01 9/30/01 12/31/01 3/31/02 6/30/02 Net Charge-Off Rate 3.25 3.07 2.93 3.00 2.89 3.33 3.58 3.98 4.18 4.48 4.41 4.66 4.92 5.22 5.37 5.34 5.15 5.42 5.15 5.26 4.93 4.25 4.44 4.48 4.55 4.18 4.27 4.70 4.44 5.11 5.20 6.34 8.09 5.98 Number of Bankruptcy Filings 192,707 202,596 195,308 189,695 199,503 222,086 220,945 231,603 252,761 283,170 290,111 298,244 321,242 353,177 340,059 335,032 341,708 361,908 350,859 343,220 321,604 335,578 314,564 309,614 302,879 312,486 300,507 301,756 356,836 390,064 349,981 354,694 369,237 390,991 FDIC Quarterly Banking Profile Second Quarter 2002 19 FDIC-Insured Commercial Banks Expansion of Credit Card Lines 2000 - 2002 $ Billions 4,000 3,776 3,846 3,500 3,324 3,242 3,076 3,000 2,806 2,709 2,500 2,944 3,129 3,450 2,000 1,500 1,000 500 0 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 Loans outstanding ($ Billions) Held on-balance-sheet * 207.6 Securitized & sold ** 290.9 Unused commitments ** 2,210.7 Total 2,709.2 219.0 228.7 249.4 216.4 226.3 218.4 232.8 247.7 250.4 295.5 294.7 299.3 308.2 315.0 328.5 341.3 358.1 367.1 2,291.6 2,806.1 2,420.2 2,943.5 2,527.7 3,076.4 2,604.5 3,129.1 2,700.7 3,242.0 2,776.8 3,323.7 2,875.9 3,450.0 3,170.2 3,776.1 3,228.6 3,846.1 * Includes check credit and other revolving credit plans before 3/31/01. ** Off-blance-sheet FDIC Quarterly Banking Profile Second Quarter 2002 20 FDIC-Insured Commercial Banks Total Securities* June 30, 2002 Held-to-Maturity 8% $96 Billion (Amortized Cost) 92% Available-for-Sale $1,141 Billion (Fair Value) Total Securities* June 30, 2002 ($ Millions) Held-to-Maturity Fair Value Amortized Cost U.S. Government Obligations U.S. Treasury U.S. Government Agencies Government Sponsored Enterprises Mortgage Pass-through Securities Collateralized Mortgage Obligations State, County, Municipal Obligations Asset Backed Securities Other Debt Securities Equity Securities Total Securities Memoranda*** Structured Notes 6,931 7,006 101.1 $4,439 1,782 27,679 17,674 15,598 21,994 510 6,574 ** $96,250 101.5 100.7 101.5 102.8 101.9 103.3 100.9 99.6 ** 102.1 $47,507 5,737 175,326 420,466 207,635 76,276 96,446 91,201 20,264 $1,140,858 101.2 101.1 101.7 101.5 101.7 103.3 100.8 103.7 109.0 101.6 $51,946 7,519 203,005 438,140 223,233 98,269 96,956 97,776 20,264 $1,237,108 101.2 101.0 101.7 101.6 101.8 103.3 100.8 120.6 109.0 101.7 to Amortized Cost (%) Fair Value Available-for-Sale Fair Value to Amortized Cost (%) Total Securities Fair Value to Amortized Cost (%) * Excludes trading account assets. ** Equity Securities are classified as 'Available-for-Sale'. *** Structured notes are included in the 'Held-to-Maturity' or 'Available-for-Sale' accounts. FDIC Quarterly Banking Profile Second Quarter 2002 21 FDIC-Insured Commercial Banks Real Estate Assets as a Percent of Total Assets June 30, 2002 Construction & Land Development Loans: 2.94% Commercial Real Estate Loans: 7.89% Other Assets Net of Reserves: 61.61% Mortgage-Backed Securities: 9.80% 1-4 Family Residential Property Loans: 15.01% All Other Real Estate Loans & Investments In Real Estate: (Including OREO): 2.75% Real Estate Loan Growth Rates 1993-2002 Annual Growth Rate (%) 30 Construction and Land Development Loans Commercial Real Estate Loans 1-4 Family Residential Property Loans 11.4 7.6 7.3 0 -30 1993 1994 1995 1996 1997 1998 1999 2000 2001 6/02* * Growth Rate for the most recent twelve-month period. FDIC Quarterly Banking Profile Second Quarter 2002 22 FDIC-Insured Commercial Banks Number of Commerical Banks with FHLB Advances* 1991 - 2002 Number of Banks 4,500 3,974 3,600 2,700 1,800 900 0 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 6/02 Amount of FHLB Advances Outstanding* 1991 - 2002 $ Billions 240 220 200 180 160 140 120 100 80 $60 60 40 20 0 $2 12/91 $16 $6 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 6/02 $26 $33 $38 $106 $155 $175 $199 $218 *Source: Call Report and FHFB prior to 3/31/01. FDIC Quarterly Banking Profile Second Quarter 2002 23 FDIC-Insured Commercial Banks Debt Securities by Maturity or Repricing Frequency... Percent of Total Assets 30 25 20 15 10 5 0 15.11 2.28 12/98 15.48 2.10 12/99 15.24 2.15 3/00 14.66 2.15 6/00 14.43 2.40 9/00 14.27 2.33 12/00 14.31 2.00 3/01 14.58 1.73 6/01 15.00 1.59 9/01 15.92 1.64 12/01 16.18 1.64 3/02 16.39 1.55 6/02 Over 1 Year Less than 1 Year 17.39 17.58 17.38 16.81 16.83 16.61 16.31 16.32 16.59 17.56 17.82 17.94 ...and by Region Percent of Total Assets Over 1 Year 30 Less than 1 Year June 30, 2002 24.27 19.12 16.82 17.47 16.52 16.83 20 17.94 10 16.39 0 1.55 All Banks 14.60 2.22 Northeast 16.70 0.78 Southeast 17.84 1.28 Central 14.35 2.17 Midwest 22.60 1.67 Southwest 15.67 1.16 West Total Securities (Debt and Equity) ($ Billions) 6/00 U.S. Government Obligations: U.S. Treasury U.S. Agencies Government Sponsored Enterprises Mortgage Pass-through Securities Collateralized Mortgage Obligations State, County, Municipal Obligations Asset Backed Securities Other Debt Securities Equity Securities Total Securities * Not reported prior to 3/01 102 5 219 285 168 90 * * 40 $1,047 9/00 94 5 229 284 166 90 * * 40 $1,062 12/00 76 5 225 296 175 93 * * 41 $1,079 3/01 56 6 204 317 178 94 71 107 18 $1,049 6/01 55 4 183 330 178 94 88 105 18 $1,056 9/01 48 4 181 365 195 96 94 105 18 $1,107 12/01 45 6 190 380 227 96 108 100 21 $1,172 3/02 51 6 199 378 230 97 100 97 22 $1,178 6/02 52 7 204 436 218 98 97 98 20 $1,229 FDIC Quarterly Banking Profile Second Quarter 2002 24 FDIC-Insured Commercial Banks Net Loans and Leases to Deposits (Domestic and Foreign) 1993 - 2002 % of Deposits 100 Assets>$1 Billion 90 90.0 80 77.5 Assets<$1 Billion 70 60 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Quarterly Change in Domestic Loans vs Domestic Deposits 1993 - 2002 $ Billions 200 Change in Domestic Loans (line) Change in Domestic Deposits (bar) 150 100 50 0 -50 -100 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 FDIC Quarterly Banking Profile Second Quarter 2002 25 FDIC-Insured Commercial Banks Commercial and Industrial Loans to Small Businesses 1998-2002 As of June 30 $ Billions 800 Small Businesses (Original loan amounts < $1 Million) 700 Medium/Large Businesses (Original loan amounts > $1 Million) 629.4 611.1 600 547.4 531.4 500 477.5 400 300 243.4 250.9 232.5 200.7 200 212.0 100 1998 1999 2000 2001 2002 FDIC Quarterly Banking Profile Second Quarter 2002 26 FDIC-Insured Commercial Banks Credit Risk Diversification Consumer Loans versus Loans to Commercial Borrowers (as a Percent of Total Loans) 1993 - 2002 Percent of Loans 80 60 60 57 55 57 59 58 43 40 45 43 40 41 42 20 0 12/93 12/95 12/97 12/99 12/01 6/02 Loans ($ Billions): Commercial Borrowers Consumer Loans $1,222 935 $1,447 1,161 $1,695 1,280 $2,097 1,398 $2,301 1,598 $2,300 1,675 Loans to Commerical Borrowers (Credit Risk Concentrated) - These are loans that can have relatively large balances at risk to a single borrower. A single loan may represent a significant portion of an institution's capital or income. Therefore, a relatively small number of defaults could impair an institution's capital or income. These loans include commercial and industrial loans, commercial real estate, construction loans, and agricultural loans. Consumer Loans (Credit Risk Diversified) - These are loans that typically have relatively small balances spread among a large number of borrowers. A number of defaults are likely but typically do not impair an institution's capital or income. These loans include consumer and credit card loans, 1-4 family residential mortgages and home equity loans. FDIC Quarterly Banking Profile Second Quarter 2002 27 FDIC-Insured Commercial Banks Quarterly Change in Reported Loans Outstanding ($ Billions) $136.7 $129.3 $92.4 $75.8 $57.2 $54.0 $40.3 $27.7 $12.5 $11.6 $1.7 $-1.5 $35.2 $74.3 $78.2 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 In the second quarter of 2002, 1-4 family loans increased by $52 billion and consumer loans increased by $13 billion, while commercial and industrial loans decreased by $27 billion. Quarterly Change in Unused Loan Commitments ($ Billions) $237.8 $156.2 $146.1 $137.9 $108.9 $84.1 $59.2 $34.8 $92.0 $80.0 $97.1 $86.2 $96.4 $116.6 $-28.3 12/98 3/99 6/99 9/99 12/99 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 In the second quarter of 2002, unused credit card commitments increased by $58 billion and unused commitments for loans to businesses increased by $34 billion. FDIC Quarterly Banking Profile Second Quarter 2002 28 FDIC-Insured Commercial Banks Derivatives 1998 - 2002 (Notional Amounts) $ Trillions 30 25 Swaps 20 15 Future and Forward Contracts 10 5 Options Contracts 0 1998 1999 2000 2001 2002 Total Derivatives (Notional Amounts, in billions of dollars) 12/98 $32,863 10,924 5,521 5,308 95 7,592 5,679 1,393 520 14,347 13,592 686 69 375 144 447 471 12/99 $34,533 9,390 5,096 4,175 119 7,361 5,795 965 601 17,781 16,884 774 123 66 287 418 361 12/00 $40,145 9,877 5,302 4,425 150 8,301 6,744 775 782 21,968 20,920 899 148 189 426 401 449 12/01 $44,647 9,313 5,310 3,862 141 9,689 8,252 743 693 25,645 24,401 1,129 115 111 411 370 598 3/02 $45,899 10,087 6,221 3,714 152 9,594 8,041 841 712 26,218 25,020 1,071 127 172 438 381 500 6/02 $49,582 10,269 6,458 3,620 191 10,242 8,470 1,014 758 29,071 27,768 1,176 127 504 492 392 720 Futures and Forward Contracts Interest rate contracts Foreign exchange rate contracts Other futures and forwards* Option Contracts Interest rate options Foreign currency options Other option contracts* Swaps Interest rate swaps Foreign exchange rate swaps Other swaps* Memoranda Spot Foreign Exchange Contracts Credit Derivatives Number of banks reporting derivatives Replacement cost of interest rate and foreign exchange rate contracts ** * Not reported by banks with less than $300 million in assets. ** Reflects replacement cost of interest rate and foreign exchange contracts covered by risk-based-capital requirements. Does not include foreign exchange rate contracts with an original maturity of 14 days or less or futures contracts. FDIC Quarterly Banking Profile Second Quarter 2002 29 FDIC-Insured Commercial Banks Concentration of Derivatives* Notional Amounts June 30, 2002 7 Largest Participants $47.6 Trillion (96%) All Other Participants (385 Banks) $2.0 Trillion (4%) Composition of Derivatives* Notional Amounts June 30, 2002 Interest Rate Contracts $42.7 Trillion (86%) Foreign Exchange Contracts $5.8 Trillion (12%) Commodity & Other Contracts $0.2 Trillion (0%) Equity Derivative Contracts $0.9 Trillion (2%) *Amounts do not represent either the net market position or the credit exposure of banks' derivative activities. They represent the gross value of all contracts written. Spot foreign exchange contracts of $452 billion for the seven largest participants and $52 billion for all others are not included. FDIC Quarterly Banking Profile Second Quarter 2002 30 FDIC-Insured Commercial Banks Purpose of Derivatives* Held for Trading Notional Amounts June 30, 2002 Interest Rate Contracts $40.7 Trillion (86%) Commodity & Other Contracts $0.2 Trillion (0%) Foreign Exchange Contracts $5.8 Trillion (12%) Equity Derivative Contracts $0.9 Trillion (2%) Not Held for Trading Notional Amounts June 30, 2002 Interest Rate Contracts $2.0 Trillion (97%) Foreign Exchange Contracts $53.6 Billion (3%) Equity Derivative Contracts, Commodity & Other Contracts $2.5 Billion (0%) * Notional amounts do not represent either the net market position or the credit exposure of banks' derivative activities. They represent the gross value of all contracts written. Spot foreign exchange contracts of $504 billion are not included. FDIC Quarterly Banking Profile Second Quarter 2002 31 FDIC-Insured Commercial Banks Position of Derivatives Gross Fair Values June 30, 2002 ($ Millions) Held for Trading 91 Banks Held Derivative Contracts for Trading 7 Largest Participants Held 98% of Total (Notional Amount) (Marked to Market) Interest Rate Seven Largest Participants Gross positive fair value Gross negative fair value All other participants Gross positive fair value Gross negative fair value Total Gross positive fair value Gross negative fair value 529,344 513,419 165,410 168,859 33,405 32,930 12,224 11,375 740,384 726,583 13,801 9,056 9,225 8,202 9,429 1,156 550 865 871 19,278 20,075 (797) 520,288 504,194 157,209 159,430 32,249 32,380 11,360 10,504 721,105 706,508 14,598 Foreign Exchange Equity Derivatives Commodity & Other Total Net Held for Purposes Other than Trading 341 Banks Held Derivative Contracts for Purposes Other than Trading 7 Largest Participants Held 75% of Total (Notional Amount) Interest Rate Seven Largest Participants Gross positive fair value Gross negative fair value All other participants Gross positive fair value Gross negative fair value Total Gross positive fair value Gross negative fair value 24,415 14,795 7,020 5,898 17,395 8,897 Foreign Exchange 494 1,011 Equity Derivatives 0 7 Commodity & Other 0 0 Total 17,889 9,915 Net 7,974 429 651 180 238 1 1 7,630 6,789 842 923 1,662 180 245 1 1 25,519 16,704 8,815 FDIC Quarterly Banking Profile Second Quarter 2002 32 FDIC-Insured Commercial Banks Return on Assets (ROA) 2002 (YTD, Annualized) West WA 1.18 MT 1.28 OR 1.78 ID 1.13 WY 1.79 NV 3.99 CA 1.41 UT 1.67 ND 1.75 SD 2.80 NE 1.29 CO 1.68 KS 1.27 Southwest OK 1.22 IA 1.30 IL 1.02 MO 1.19 IN 1.53 Midwest Central MN 1.63 WI 1.36 MI 1.43 OH 1.65 KY 1.11 Southeast TN 1.51 AR 1.19 MS 1.36 LA 1.38 FL 1.02 PR 1.14 AL 1.36 GA 1.34 NY 1.01 PA 1.38 Northeast ME 1.39 VT : 1.40 NH: 1.92 MA: 1.13 RI : 1.03 CT : 1.27 NJ : 1.46 DE : 2.92 MD: 1.11 DC : 1.22 WV 1.10 VA 2.01 NC 1.40 AZ 2.45 NM 1.31 AK 1.40 HI 1.31 SC 1.18 TX 1.36 ROA 1 - 1.25 percent ROA > 1.25 percent ROA Rankings by State No. of Inst. as of 6/30/02 YTD 2002 YTD 2001 Change* No. of Inst. as of 6/30/02 YTD 2002 YTD 2001 Change* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Nevada Delaware South Dakota Arizona Virginia New Hampshire Wyoming Oregon North Dakota Colorado Utah Ohio Minnesota Indiana Tennessee New Jersey Michigan California Alaska North Carolina Vermont Maine Louisiana Pennsylvania Alabama Mississippi Texas 35 31 93 40 128 14 45 32 104 175 56 201 472 154 190 82 161 288 6 72 15 15 142 177 153 98 675 3.99 2.92 2.80 2.45 2.01 1.92 1.79 1.78 1.75 1.68 1.67 1.65 1.63 1.53 1.51 1.46 1.43 1.41 1.40 1.40 1.40 1.39 1.38 1.38 1.36 1.36 1.36 3.87 2.22 2.42 2.08 1.91 4.28 1.81 1.49 1.31 1.39 1.23 1.15 1.21 1.03 1.27 0.97 1.04 1.77 0.82 1.15 1.48 1.21 1.22 1.30 1.19 1.12 1.24 12 70 38 37 10 (236) (2) 29 44 29 44 50 42 50 24 49 39 (36) 58 25 (8) 18 16 8 17 24 12 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Wisconsin Georgia Hawaii New Mexico Iowa Nebraska Montana Connecticut Kansas District of Col. Oklahoma Arkansas Missouri South Carolina Washington Puerto Rico Idaho Massachusetts Kentucky Maryland West Virginia Rhode Island Florida Illinois New York U.S. and Terr. 279 324 7 52 414 273 80 25 368 4 276 170 350 77 79 12 17 41 227 72 70 7 259 686 137 7,966 1.36 1.34 1.31 1.31 1.30 1.29 1.28 1.27 1.27 1.22 1.22 1.19 1.19 1.18 1.18 1.14 1.13 1.13 1.11 1.11 1.10 1.03 1.02 1.02 1.01 1.37 1.11 1.49 1.26 0.66 1.13 1.18 1.34 0.73 1.33 0.75 1.17 1.04 1.19 1.16 1.10 1.12 1.00 1.55 1.20 0.89 0.68 1.12 0.82 0.95 0.99 1.23 25 (15) 5 65 17 11 (6) 54 (6) 47 5 15 0 2 8 2 13 (42) (9) 22 42 (9) 20 7 2 14 *YTD ROA minus ROA for the same period one year ago equals change in basis points. Basis point = 1/100 of a percent. Results for four of the states with the highest ROAs (SD, NV, DE, & NH) were significantly influenced by the presence of large credit card operators. FDIC Quarterly Banking Profile Second Quarter 2002 33 FDIC-Insured Commercial Banks Quarterly Net Income 1998 - 2002 $ Billions 5 Net Operating Income Securities and Other Gains/Losses, Net 4 3.4 3.5 3.9 3.7 3.6 3 2.6 2.8 3.0 2.7 2.9 2.8 2.9 2.7 2.7 2.5 2.6 2.9 2.0 2 1 1 2 3 1998 4 1 2 3 1999 4 1 2 3 2000 4 1 2 3 2001 4 1 2 2002 Quarterly Net Interest Margins, Annualized 1998 - 2002 Net Interest Margin (%) 4.0 Assets > $100 Million Assets < $100 Million 3.50 3.5 3.48 3.0 2.5 1 2 3 1998 4 1 2 3 1999 4 1 2 3 2000 4 1 2 3 2001 4 1 2 2002 FDIC Quarterly Banking Profile Second Quarter 2002 34 FDIC-Insured Saving Institutions Quarterly Return on Assets (ROA), Annualized ROA % 2.0 5 Highest Values Jun 2002 Dec 2001 Sep 1998 Mar 2002 Jun 1998 1.21 1.16 1.14 1.12 1.09 1993 - 2002 1.6 1.2 0.8 0.4 0.0 -0.4 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Quarterly Return on Equity (ROE), Annualized ROE % 40 5 Highest Values Dec 2001 Jun 2002 Mar 1993 Mar 2002 Sep 1998 13.5 13.2 13.1 12.9 12.7 1993 - 2002 30 20 10 0 -10 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 FDIC Quarterly Banking Profile Second Quarter 2002 35 FDIC-Insured Saving Institutions Quarterly Return on Risk-Weighted Assets (RWA)* and RWA to Total Assets 1993 - 2002 Return on RWA(%) 2.5 RWA to Assets(%) 64 Return on Risk-Weighted Assets 2.0 2.0 62 1.5 59.9 60 1.0 58 0.5 56 0.0 54 Risk-Weighted Assets to Assets -0.5 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 52 * Assets weighted according to risk categories used in regulatory capital computations. FDIC Quarterly Banking Profile Second Quarter 2002 36 FDIC-Insured Saving Institutions Quarterly Efficiency Ratios* 1999 - 2002 Efficiency Ratio (%) 90 Assets<$100 Million 80 70 60 50 Assets>$100 Million 40 1999 Assets<$100 Million Assets>$100 Million Total 77.14 57.39 58.13 77.43 55.07 55.89 76.37 54.57 55.38 81.70 55.59 56.50 79.32 54.60 55.46 2000 78.51 55.09 55.93 84.13 56.90 57.96 81.27 58.26 59.19 82.79 58.51 59.40 2001 80.19 57.50 58.26 77.58 57.89 58.50 89.20 56.96 58.03 77.75 54.66 55.30 2002 75.01 56.20 56.73 *Noninterest expenses less amortization of intangible assets as a percent of net interest income plus noninterest income. FDIC Quarterly Banking Profile Second Quarter 2002 37 FDIC-Insured Saving Institutions Noninterest Income as a Percentage of Net Operating Revenue* 1993 - 2002 Quarterly Noninterest Income, % of net Operating Revenue* 50 Assets < $100 Million 40 38.8 30 20 21.0 10 Assets > $100 Million 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 *Net operating revenue equals net interest income plus noninterest income. FDIC Quarterly Banking Profile Second Quarter 2002 38 FDIC-Insured Saving Institutions Changes in the Number of FDIC-Insured Savings Institutions Quarterly, 1998 - 2002 Number of Banks 50 40 Mergers 30 20 New Charters 10 Failures 0 1998 1999 2000 2001 2002 New Charters Mergers Failures Other Changes, Net* No. of banks at end of quarter Net Change during quarter 4 26 0 -1 5 29 0 -3 12 26 0 -2 7 33 0 2 8 28 0 -1 9 19 0 -5 12 17 1 2 9 16 0 -2 5 13 1 3 12 23 0 1 7 17 0 -1 8 29 0 -2 6 11 0 -1 3 18 0 0 3 18 1 -1 5 18 0 -5 1 18 0 -1 0 11 1 -5 1,756 1,729 1,713 1,690 1,668 1,653 1,649 1,642 1,635 1,624 1,613 1,589 1,584 1,569 1,552 1,533 1,515 1,498 -23 -27 -16 -24 -21 -15 -4 -8 -6 -11 -11 -23 -6 -15 -17 -18 -18 -17 * Includes charter conversions, voluntary liquidations, adjustments for open-bank assistance transactions and other changes. FDIC Quarterly Banking Profile Second Quarter 2002 39 FDIC-Insured Saving Institutions Capital Ratios 1996 - 2002 Ratios (%) 18 Total Risk-Based Capital 16 14 12 Tier 1 Risk-Based Capital 10 Equity to Assets 8 6 Core Capital (Leverage) 4 1996 1997 1998 1999 2000 2001 2002 12/96 Total Risk-Based Capital Tier 1 Risk-Based Capital Equity to Assets Core Capital (Leverage) 15.17 13.85 8.34 7.76 12/97 15.14 13.80 8.71 7.95 12/98 15.02 13.68 8.68 7.85 12/99 14.48 13.24 8.27 7.86 12/00 13.96 12.70 8.45 7.80 12/01 14.01 12.66 8.49 7.80 6/02 14.64 13.32 9.29 8.18 FDIC Quarterly Banking Profile Second Quarter 2002 40 FDIC-Insured Saving Institutions Reserve Coverage Ratio* 1998-2002 $ Billions 30 Coverage Ratio (%) 140 130 120 24 Coverage Ratio (%) 110 100 90 18 80 70 12 Loan-Loss Reserves ($) 60 50 40 30 20 6 Noncurrent Loans ($) 0 1998 1999 2000 2001 2002 10 0 Noncurrent Loans ($ Billions) 7.2 6.8 6.3 6.2 Loan-Loss Reserves ($ Billions) 7.0 7.0 7.0 6.9 Coverage Ratio (%) 97 103 110 6.0 5.6 5.7 5.5 5.4 5.2 5.5 5.9 6.3 6.6 7.2 7.5 7.9 7.4 7.0 7.0 7.0 6.9 6.9 7.0 7.2 7.3 7.5 7.6 7.9 7.7 7.9 8.0 111 115 124 123 125 127 134 132 124 119 116 110 102 99 109 * Loan-loss reserves to noncurrent loans. FDIC Quarterly Banking Profile Second Quarter 2002 41 FDIC-Insured Saving Institutions Loan Quality 1998-2002 Percent of Loans 30-89 Day Past Due Loans 3 2 1 0 1998 1999 2000 2001 2002 Percent of Loans Noncurrent Loans* 3 2 1 0 1998 1999 2000 2001 2002 Percent of Loans Quarterly Net Charge-offs (Annualized) 4 3 2 1 0 1998 1999 Total Real Estate Loans to Individuals 2000 2001 Commercial and Industrial All Other Loans 2002 *Loans past due 90 or more days or in nonaccrual status. FDIC Quarterly Banking Profile Second Quarter 2002 42 FDIC-Insured Saving Institutions Noncurrent Real Estate Loan Rates by Type* 2000-2002 Percent of Loans 2.0 Total Real Estate Construction and Land 1-4 Family Multifamily Commercial 1.5 1.0 0.5 0 3/00 6/00 9/00 12/00 3/01 6/01 9/01 12/01 3/02 6/02 Construction and Land 1-4 Family Multifamily Commercial Total 0.73 0.69 0.34 0.85 0.68 0.74 0.63 0.30 0.82 0.62 0.80 0.62 0.28 0.83 0.62 1.08 0.65 0.27 0.87 0.66 1.20 0.66 0.28 1.03 0.69 1.28 0.69 0.34 1.03 0.72 1.54 0.74 0.34 1.18 0.78 1.39 0.78 0.36 1.37 0.83 1.70 0.83 0.38 1.36 0.89 1.52 0.79 0.34 1.26 0.83 *Noncurrent loan rates represent the percentage of loans in each category that are past due 90 days or more or in nonaccrual status. FDIC Quarterly Banking Profile Second Quarter 2002 43 FDIC-Insured Saving Institutions Utilization Rates of Loan Commitments* 1997-2002 Utilization Rate (%) 100 Commercial Real Estate 90 Home Equity 80 Commercial and Industrial 70 Credit Cards** 60 50 1997 1998 1999 2000 2001 2002 * Utilization rates represent outstanding loan amounts as a percentage of unused loan commmitments plus outstanding loan amounts. ** Includes on-balance-sheet loans and off-balance-sheet securitized receivables. FDIC Quarterly Banking Profile Second Quarter 2002 44 FDIC-Insured Saving Institutions Total Securities* as a Percent of Assets 40 Percent of Assets June 30, 2002 30 30.6 20 20.4 14.8 21.4 22.4 18.6 10 0 Northeast Southeast Central Midwest Southwest West Total Securities* ($ Billions) 6/00 U.S. Government Obligations (non-mortgage) Mortgage-Backed Securities (excluding CMO's) Collateralized Mortgage Obligations All Other Securities Total Securities Securities as a Percent of Assets Memoranda: Amortized Cost of Total Held-to-Maturity Sec. Fair Value of Total Available-for-Sale Sec. 95 184 93 182 94 188 72 208 71 208 68 208 67 218 71 232 68 225 $40 116 95 28 279 23.6% 9/00 $39 115 93 28 276 23.0% 12/00 $40 118 95 29 282 23.2% 3/01 $41 122 89 28 280 22.3% 6/01 $41 122 86 30 279 21.9% 9/01 $37 122 85 32 276 21.4% 12/01 $57 115 82 31 285 21.9% 3/02 $73 113 85 32 302 22.9% 6/02 $67 110 84 32 293 22.8% Total Securities* June 30, 2002 Mortgage-Backed Securities: 37.53% (excluding CMO's) Collateralized Mortgage Obligations: 28.69% All Other Securities: 10.89% U.S. Government Obligations (non-mortgage): 22.88% *Excludes trading account assets for savings institutions filing a Call Report. Trading account assets for savings institutions filing a TFR are netted out of 'All Other Securities'. FDIC Quarterly Banking Profile Second Quarter 2002 45 FDIC-Insured Saving Institutions Real Estate Assets as a Percent of Total Assets June 30, 2002 Mortgage-Backed Securities: 15.07% Construction & Land Development Loans: 2.89% Commercial Real Estate Loans: 5.18% Multifamily Residential Loans: 4.69% 1-4 Family Residential Property Loans: 44.71% All Other Real Estate Loans & Investments In Real Estate: (Including OREO): 0.16% Other Assets Net of Reserves: 27.30% Real Estate Loan Growth Rates 1993-2002 Annual Growth Rate (%) 40 Construction and Land Development Loans Commercial Real Estate Loans 1-4 Family Residential Property Loans Multifamily Residential Loans 30 20 10 0 6.3 3.8 1.4 -3.0 -10 -20 -30 1993 1994 1995 1996 1997 1998 1999 2000 2001 6/02* * Beginning in March 1997, TFR filers report balances net of loans in process. FDIC Quarterly Banking Profile Second Quarter 2002 46 FDIC-Insured Saving Institutions Number of Savings Institutions with FHLB Advances* 1991 - 2002 Number of Banks 1,600 1,400 1,200 1,044 1,000 800 600 400 200 0 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 6/02 Amount of FHLB Advances Outstanding* 1991 - 2002 $ Billions 300 $261 250 $231 $255 $224 200 $175 150 $121 $102 100 $76 $72 $85 $100 $140 50 0 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 6/02 *Source: TFR and Call Reports, FHFB prior to 3/31/01. FDIC Quarterly Banking Profile Second Quarter 2002 47 FDIC-Insured Saving Institutions Assets of Mutual and Stock Savings Institutions 1993 - 2002 $ Billions 1500 Stock 1,139 1000 500 Mutual 149 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Number of Mutual and Stock Savings Institutions 1993 - 2002 Number of Institutions 1500 1250 Stock 1000 750 Mutual 811 687 500 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 FDIC Quarterly Banking Profile Second Quarter 2002 48 FDIC-Insured Saving Institutions Return on Assets (ROA) 2002 (YTD, Annualized) West WA 1.38 MT 0.58 OR 0.87 ID 0.62 WY 0.65 NV 1.29 CA 1.36 UT 1.06 ND 1.23 SD 1.07 NE 0.78 CO 1.03 KS 0.92 Southwest OK 2.72 IA 1.07 IL 1.48 MO 0.72 IN 0.80 Midwest Central MN 1.11 WI 1.13 MI 1.25 OH 0.92 KY 0.86 Southeast TN 1.29 AR 1.11 MS 0.31 LA 0.92 FL 0.94 PR NA AL 0.68 GA -0.46 NY 1.50 PA 1.00 Northeast ME 0.78 VT : 0.91 NH: 1.41 MA: 0.90 RI : 0.94 CT : 1.00 NJ : 1.04 DE : 1.93 MD: 0.84 DC : -0.20 WV 0.82 VA 0.31 NC 0.99 AZ 1.84 NM 1.03 AK 1.09 HI 1.02 SC 1.06 TX 1.61 ROA < 1 percent ROA 1 - 1.25 percent ROA > 1.25 percent Rankings by ROA No. of Inst. as of 6/30/02 YTD 2002 YTD 2001 Change* No. of Inst. as of 6/30/02 YTD 2002 YTD 2001 Change* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Oklahoma Delaware Arizona Texas New York Illinois New Hampshire Washington California Nevada Tennessee Michigan North Dakota Wisconsin Arkansas Minnesota Alaska Iowa South Dakota South Carolina Utah New Jersey Colorado New Mexico Hawaii Connecticut Pennsylvania 7 7 3 48 76 112 18 22 42 2 23 20 3 41 8 22 2 22 4 26 4 71 10 9 2 43 111 2.72 1.93 1.84 1.61 1.50 1.48 1.41 1.38 1.36 1.29 1.29 1.25 1.23 1.13 1.11 1.11 1.09 1.07 1.07 1.06 1.06 1.04 1.03 1.03 1.02 1.00 1.00 2.19 1.40 2.83 1.19 1.28 0.61 1.19 1.21 1.24 (0.08) 1.03 0.10 0.70 0.86 0.89 0.83 0.72 0.68 0.80 0.94 1.15 0.87 0.76 0.88 0.81 1.10 0.70 53 53 (99) 42 22 87 22 17 12 137 26 115 53 27 22 28 37 39 27 12 (9) 17 27 15 21 (10) 30 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 North Carolina Florida Rhode Island Kansas Louisiana Ohio Vermont Massachusetts Oregon Kentucky Maryland West Virginia Indiana Maine Nebraska Missouri Alabama Wyoming Idaho Montana Mississippi Virginia District of Col. Georgia Puerto Rico U.S. and Terr. 38 42 7 17 32 118 5 179 5 27 58 7 60 24 15 35 11 4 3 4 8 15 1 23 0 1,498 0.99 0.94 0.94 0.92 0.92 0.92 0.91 0.90 0.87 0.86 0.84 0.82 0.80 0.78 0.78 0.72 0.68 0.65 0.62 0.58 0.31 0.31 (0.20) (0.46) NA 1.22 0.67 0.79 0.83 0.93 0.71 0.96 0.83 0.83 0.91 0.59 0.68 0.58 0.85 0.64 0.84 0.50 0.93 0.41 0.50 0.98 1.26 0.39 0.20 (0.68) NA 1.01 32 15 11 (1) 21 (4) 8 7 (4) 27 16 24 (5) 14 (6) 22 (25) 24 12 (40) (95) (8) (40) 22 NM 21 *YTD ROA minus ROA for the same period one year ago equals change in basis points. Basis point = 1/100 of a percent. FDIC Quarterly Banking Profile Second Quarter 2002 49 FDIC-Insured Saving Institutions Number of FDIC-Insured Banking Organizations Number 1986 - 2002 16,000 12,000 8,000 Thrifts and Independent Banks 4,000 One-Bank Holding Companies Multi-Bank Holding Companies 12/88 7,394 4,918 973 13,285 0 12/86 Thrifts* and Indpt Banks One-Bank Holding Co.'s Multi-Bank Holding Co.'s Total 8,351 5,001 960 14,312 12/90 6,290 4,870 963 12,123 12/92 5,488 4,803 877 11,168 12/94 4,692 4,521 839 10,052 12/96 3,967 4,427 823 9,217 12/98 3,383 4,396 745 8,524 12/00 3,153 4,395 700 8,248 6/02 2,915 4,482 626 8,023 Assets of FDIC-Insured Banking Organizations $ Billions 1986 - 2002 10,000 8,000 6,000 4,000 Thrifts and Independent Banks One-Bank Holding Companies 2,000 Multi-Bank Holding Companies 0 12/86 Thrifts* and Indpt Banks One-Bank Holding Co.'s Multi-Bank Holding Co.'s Total 1,592 501 2,234 4,328 12/88 1,798 516 2,423 4,737 12/90 1,405 619 2,625 4,649 12/92 1,188 672 2,676 4,536 12/94 1,132 691 3,196 5,019 12/96 1,128 777 3,702 5,607 12/98 1,115 931 4,485 6,531 12/00 1,330 1,292 4,840 7,462 6/02 1,448 1,445 5,145 8,038 * Includes thrifts owned by unitary thrift holding companies or multi-thrift holding companies. FDIC Quarterly Banking Profile Second Quarter 2002 50 ALL FDIC-Insured Institutions Number of FDIC-Insured Institutions 1986 - 2002 Number 20,000 15,000 Savings Institutions 10,000 5,000 Commercial Banks 0 12/86 Savings Institutions Commercial Banks Total 3,677 14,199 17,876 12/88 3,438 13,123 16,561 12/90 2,815 12,343 15,158 12/92 2,390 11,462 13,852 12/94 2,152 10,451 12,603 12/96 1,926 9,527 11,453 12/98 1,690 8,773 10,463 12/00 1,589 8,315 9,904 6/02 1,498 7,966 9,464 Assets of FDIC-Insured Institutions 1986 - 2002 $ Billions 10,000 8,000 6,000 Savings Institutions 4,000 2,000 Commercial Banks 0 12/86 Savings Institutions Commercial Banks Total 1,387 2,941 4,328 12/88 1,606 3,131 4,737 12/90 1,259 3,389 4,649 12/92 1,030 3,506 4,536 12/94 1,009 4,011 5,019 12/96 1,029 4,578 5,607 12/98 1,088 5,443 6,531 12/00 1,217 6,245 7,462 6/02 1,288 6,750 8,038 FDIC Quarterly Banking Profile Second Quarter 2002 51 ALL FDIC-Insured Institutions Number of FDIC-Insured "Problem" Institutions 1994-2002 Number of Institutions 400 Savings Institutions Commercial Banks 318 300 200 193 117 100 92 84 79 87 89 90 94 95 102 94 114 124 136 0 12/94 Savings Institutions Commercial Banks 71 247 12/95 49 144 12/96 35 82 12/97 21 71 12/98 15 69 12/99 13 66 3/00 15 72 6/00 16 73 9/00 15 75 12/00 18 76 3/01 17 78 6/01 22 80 9/01 20 74 12/01 19 95 3/02 22 102 6/02 21 115 Assets of FDIC-Insured "Problem" Institutions 1994-2002 $ Billions 200 Savings Institutions Commercial Banks 150 100 $72 $52 50 $31 $19 $12 0 12/94 Savings Institutions Commercial Banks 39 33 12/95 14 17 12/96 7 5 12/97 2 5 12/98 6 5 12/99 6 4 3/00 5 5 6/00 8 11 9/00 7 12 12/00 7 17 3/01 6 17 6/01 7 17 9/01 4 14 12/01 4 36 3/02 15 37 6/02 4 36 $6 $11 $10 $10 $19 $24 $23 $24 $18 $40 $40 FDIC Quarterly Banking Profile Second Quarter 2002 53 ALL FDIC-Insured Institutions Capital Category Distribution June 30, 2002 BIF-Member Institutions Institutions Number Percent of of Well Capitalized Adequately Capitalized Undercapitalized Significantly Undercapitalized Critically Undercapitalized 8,024 172 7 4 1 Total 97.8% 2.1% 0.1% 0.0% 0.0% In Assets Percent of Total 99.5% 0.4% 0.0% 0.0% 0.0% Billions $6,943.2 $28.1 $1.6 $0.3 $1.6 SAIF-Member Institutions Institutions Number Percent of of Well Capitalized Adequately Capitalized Undercapitalized Significantly Undercapitalized Critically Undercapitalized 1,234 21 1 0 0 Total 98.2% 1.7% 0.1% 0.0% 0.0% In Assets Percent of Total 99.8% 0.2% 0.0% 0.0% 0.0% Billions $1,060.4 $2.2 $0.0 $0.0 $0.0 Note: Excludes U.S. branches of foreign banks. Capital Category Definitions Total Risk-Based Capital* Well Capitalized Adequately Capitalized Undercapitalized Significantly Undercapitalized Critically Undercapitalized >=10% >=8% >=6% <6% -and and and or Tier 1 Risk-Based Capital* >=6% >=4% >=3% <3% -and and and or Tier 1 Leverage >=5% >=4% >=3% <3% -and Tangible Equity --->2% <=2% * As a percentage of risk-weighted assets. FDIC Quarterly Banking Profile Second Quarter 2002 55 ALL FDIC-Insured Institutions Total Liabilities and Equity Capital June 30, 2002 Insured Deposits 41.1% Equity Capital 9.3% Uninsured Deposits 24.3% All Other Liabilities 6.4% Other Borrowed Funds* 19.0% ($ Billions) Insured Deposits (estimated) BIF - Insured SAIF - Insured Unisured Deposits In Foreign Offices Other Borrowed Funds* All Other Liabilities Subordinated Debt Equity Capital Total Liabilities and Equity Capital 6/30/01 3,152 2,382 773 1,868 682 1,501 448 93 666 7,635 6/30/02 3,302 2,482 820 1,952 641 1,529 512 97 744 8,038 % Change 4.8 4.2 6.1 4.5 -6.0 1.9 14.3 4.3 11.7 5.3 * Other borrowed funds include federal funds purchased, securities sold under agreement to repurchase, FHLB and FRB borrowings and indebtedness. FDIC Quarterly Banking Profile Second Quarter 2002 56 ALL FDIC-Insured Institutions Insurance Fund Reserve Ratios December 31, 1995 - June 30, 2002 Funds per $100 Est. Insured Deposits BIF Coverage SAIF Coverage 1.43 1.38 1.34 1.30 1.31 1.26 1.23 1.26 1.36 1.39 1.37 1.37 1.35 1.43 1.36 1.36 1.38 Target Ratio 1.25 0.47 12/95 12/96 12/97 12/98 12/99 12/00 12/01 3/02 6/02 ($ Billions) BIF Fund Balance Est. Insured Deposits SAIF Fund Balance Est. Insured Deposits 25.5 1,951.7 26.9 2,007.0 28.3 2,056.6 29.6 2,134.4 29.4 2,151.5 31.0 2,299.9 30.4 2,408.3 30.7 2,485.8 31.2 2,482.8 3.4 711.9 8.9 683.4 9.4 689.9 9.8 716.0 10.3 717.6 10.8 755.2 10.9 802.4 11.0 812.8 11.3 820.5 Note: Includes insured branches of foreign banks. 2002 fund balances are unaudited. Insured deposits for prior periods may reflect adjustments. FDIC Quarterly Banking Profile Second Quarter 2002 57 ALL FDIC-Insured Institutions U.S. Treasury Yield Curves June 30, 2001 - June 30, 2002 Spot Yield (%) 7 6 5 6/30/01 4 3/31/02 3 6/30/02 2 1 Maturity 6/30/02 3/31/02 12/31/01 9/30/01 6/30/01 3-Month 1.74 1.78 1.86 3.10 3.71 6-Month 1.86 1.96 1.86 3.05 3.70 1 Year 2.25 2.41 2.10 3.14 3.72 2 Year 3.12 3.31 2.78 3.43 4.21 3 Year 3.64 3.88 3.25 3.73 4.47 5 Year 4.33 4.53 4.04 4.32 4.91 7 Year 4.72 4.94 4.47 4.65 5.21 10 Year 5.02 5.12 4.72 4.84 5.36 30 Year 5.61* 5.52 5.21 5.47 5.74 Source: Federal Reserve's H.15 Statistical Release. The quarterly average rates shown above represent a 3-month average of the monthly average rates published by the Federal Reserve. * Source: 3 month average daily closes of CBOE 30 year T-Bond index (from Yahoo, Commodity Systems,Inc.). FDIC Quarterly Banking Profile Second Quarter 2002 58 ALL FDIC-Insured Institutions NOTES TO USERS This publication contains financial data and other information for depository institutions insured by the Federal Deposit Insurance Corporation (FDIC). These notes are an integral part of this publication and provide information regarding the comparability of source data and reporting differences over time. The information presented in the FDIC Quarterly Banking Profile is divided into the following groups of institutions: counting. No adjustments are made for any double-counting of subsidiary data. All asset and liability figures used in calculating performance ratios represent average amounts for the period (beginning-ofperiod amount plus end-of-period amount plus any interim periods, divided by the total number of periods). For “pooling-ofinterest” mergers, the assets of the acquired institution(s) are included in average assets since the year-to-date income includes the results of all merged institutions. No adjustments are made for “purchase accounting” mergers. Growth rates represent the percentage change over a 12-month period in totals for institutions in the base period to totals for institutions in the current period. All data are collected and presented based on the location of each reporting institution’s main office. Reported data may include assets and liabilities located outside of the reporting institution’s home state. In addition, institutions may change their charters, resulting in an inter-industry migration, e.g., savings institutions can convert to commercial banks or commercial banks may convert to savings institutions. These situations can affect state and regional statistics. FDIC-Insured Commercial Banks This section covers commercial banks insured by the FDIC either through the Bank Insurance Fund (BIF) or through the Savings Association Insurance Fund (SAIF). These institutions are regulated by and submit financial reports to one of the three federal commercial bank regulators (the Board of Governors of the Federal Reserve System, the FDIC or the Office of the Comptroller of the Currency). FDIC-Insured Savings Institutions This section covers savings institutions insured by either BIF or SAIF that operate under state or federal banking codes applicable to thrift institutions. Savings institutions in conservatorships, are excluded from these tables while in conservatorship, where applicable. The institutions covered in this section are regulated by and submit financial reports to one of two Federal regulators – the FDIC or the Office of Thrift Supervision (OTS). FDIC-Insured Institutions by Insurance Fund Summary balance-sheet and earnings data are provided for commercial banks and savings institutions according to insurance fund membership. BIF-member institutions may acquire SAIF-insured deposits, resulting in institutions with some deposits covered by both insurance funds. Also, SAIF members may acquire BIF-insured deposits. The insurance fund membership does not necessarily reflect which fund insures the largest percentage of an institution’s deposits. Therefore, the BIF-member and the SAIF-member tables each include deposits from both insurance funds. Depository institutions that are not insured by the FDIC through either the BIF or SAIF are not included in the FDIC Quarterly Banking Profile. U.S. branches of institutions headquartered in foreign countries and nondeposit trust companies are not included unless otherwise indicated. Efforts are made to obtain financial reports for all active institutions. However, in some cases, final financial reports are not available for institutions that have closed or converted their charter. DATA SOURCES The financial information appearing in this publication is obtained primarily from the Federal Financial Institutions Examination Council (FFIEC) Call Reports and the OTS Thrift Financial Reports submitted by all FDIC-insured depository institutions. This information is stored on and retrieved from the FDIC’s Research Information System (RIS) data base. COMPUTATION METHODOLOGY Certain adjustments are made to the OTS Thrift Financial Reports to provide closer conformance with the reporting and accounting requirements of the FFIEC Call Reports. Parent institutions are required to file consolidated reports, while their subsidiary financial institutions are still required to file separate reports. Data from subsidiary institution reports are included in the Quarterly Banking Profile tables, which can lead to double- RECENT ACCOUNTING CHANGES FASB Statement No. 133 Accounting for Derivative Instruments and Hedging Activities — establishes new accounting and reporting standards. Derivatives were previously off-balance sheet items, but beginning in 2001 all banks must recognize derivatives as either assets or liabilities on the balance sheet, measured at fair value. A derivative may be specifically designated as a “fair value hedge,” a “cash flow hedge,” or a hedge of a foreign currency exposure. The accounting for changes in the value of a derivative (gains and losses) depends on the intended use of the derivative, its resulting designation, and the effectiveness of the hedge. Derivatives held for purposes other than trading are reported as “other assets” (positive fair values) or “other liabilities” (negative fair values). For a fair value hedge, the gain or loss is recognized in earnings and “effectively” offsets loss or gain on the hedged item attributable to the risk being hedged. Any ineffectiveness of the hedge could result in a net gain or loss on the income statement. Accumulated net gains (losses) on cash flow hedges are recorded on the balance sheet as “accumulated other comprehensive income” and the periodic change in the accumulated net gains (losses) for cash flow hedges is reflected directly in equity as the value of the derivative changes. Initial transition adjustments upon adoption of FAS 133 are reported as adjustments to net income in the income statement as extraordinary items. Upon implementing FAS 133, a bank may transfer any debt security categorized as heldto-maturity into the available-for-sale category or the trading category. Unrealized gains (losses) on transferred held-tomaturity debt securities on the date of initial application must be reflected as an adjustment to net income if transferred to the trading category or an adjustment to equity if transferred to the available-for-sale category. Subchapter S Corporations –The Small Business Job Protection Act of 1996 changed the Internal Revenue Code to allow financial institutions to elect Subchapter S corporation sta- FDIC Quarterly Banking Profile Second Quarter 2002 59 Notes to Users tus, beginning in 1997. A Subchapter S corporation is treated as a pass-through entity, similar to a partnership, for federal income tax purposes. It is generally not subject to any federal income taxes at the corporate level. Its taxable income flows through to its shareholders in proportion to their stock ownership, and the shareholders generally pay federal income taxes on their share of this taxable income. This can have the effect of reducing institutions’ reported taxes and increasing their after-tax earnings. The election of Subchapter S status may result in an increase in shareholders’ personal tax liability. Therefore, some S corporations may increase the amount of earnings distributed as dividends to compensate for higher personal taxes. DEFINITIONS (in alphabetical order) BIF-insured deposits (estimated) – the amount of deposits in accounts of less than $100,000 insured by the BIF. For SAIFmember “Oakar” institutions, it represents the adjusted attributable amount acquired from BIF members. Construction and development loans – includes loans for all property types under construction, as well as loans for land acquisition and development. Derivative contracts, gross fair values (positive/negative) – are reported separately and represent the amount at which a contract could be exchanged in a transaction between willing parties, other than in a forced or liquidation sale. If a quoted market price is available for a contract, the fair value reported for that contract is calculated using this market price. If quoted market prices are not available, the reporting banks use the best estimate of fair value based on quoted market prices of similar contracts or on valuation techniques such as discounted cash flows. This information is reported only by banks with assets greater than $100 million. Derivatives (notional amount) – represents the sum of the following: interest-rate contracts (defined as the “notional” value of interest-rate swap, futures, forward and option contracts), foreign-exchange-rate contracts, commodity contracts and equity contracts (defined similarly to interest-rate contracts). Futures and forward contracts – a contract in which the buyer agrees to purchase and the seller agrees to sell, at a specified future date, a specific quantity of an underlying variable or index at a specified price or yield. These contracts exist for a variety of variables or indices, (traditional agricultural or physical commodities, as well as currencies and interest rates). Futures contracts are standardized and are traded on organized exchanges which set limits on counterparty credit exposure. Forward contracts do not have standardized terms and are traded over the counter. Option contracts – a contract in which the buyer acquires the right to buy from or sell to another party some specified amount of an underlying variable or index at a stated price (strike price) during a period or on a specified future date, in return for compensation (such as a fee or premium). The seller is obligated to purchase or sell the variable or index at the discretion of the buyer of the contract. Swaps – an obligation between two parties to exchange a series of cash flows at periodic intervals (settlement dates), for a specified period. The cash flows of a swap are either fixed, or determined for each settlement date by multiplying the quantity (notional principal) of the underlying variable or index by specified reference rates or prices. Except for currency swaps, the notional principal is used to calculate each payment but is not exchanged. Efficiency Ratio – Noninterest expense less amortization of intangible assets as a percent of net interest income plus noninterest income. This ratio measures the proportion of net operating revenues that are absorbed by overhead expenses, so that a lower value indicates greater efficiency. Loans secured by real estate – includes home equity loans, junior liens secured by 1-4 family residential properties and all other loans secured by real estate. Loans to individuals – includes outstanding credit card balances and other secured and unsecured consumer loans. Mortgage-backed securities – certificates of participation in pools of residential mortgages and collateralized mortgage obligations issued or guaranteed by government-sponsored or private enterprises. Also, see “Securities”, below. Net charge-offs – total loans and leases charged off (removed from balance sheet because of uncollectibility), less amounts recovered on loans and leases previously charged off. Net interest margin – the difference between interest and dividends earned on interest-bearing assets and interest paid to depositors and other creditors, expressed as a percentage of average earning assets. No adjustments are made for interest income that is tax exempt. Net operating income – income excluding discretionary transactions such as gains (or losses) on the sale of investment securities and extraordinary items. Income taxes subtracted from operating income have been adjusted to exclude the portion applicable to securities gains (or losses). Noncurrent assets – the sum of loans, leases, debt securities and other assets that are 90 days or more past due, or in nonaccrual status. Noncurrent loans & leases – the sum of loans and leases 90 days or more past due, and loans and leases in nonaccrual status. Other real estate owned – primarily foreclosed property. Direct and indirect investments in real estate ventures are excluded. The amount is reflected net of valuation allowances. For institutions that file a Thrift Financial Report (TFR), the valuation allowance subtracted also includes allowances for other repossessed assets. Also, for TFR filers the components of other real estate owned are reported gross of valuation allowances. “Problem” institutions – federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory concern. “Problem” institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the degree of risk and supervisory concern, they are rated either a “4” or “5”. For all BIF-member institutions, and for all SAIF-member institutions for which the FDIC is the primary federal regulator, FDIC composite ratings are used. For all SAIF-member institutions whose primary federal regulator is the OTS, the OTS compos- FDIC Quarterly Banking Profile Second Quarter 2002 60 Notes to Users ite rating is used. Reserves for losses – the allowance for loan and lease losses on a consolidated basis. Prior to March 31, 2001 reserves for losses included the allocated transfer risk reserve, which is no longer included as part of the loss reserve, but netted from loans and leases. Return on assets – net income (including gains or losses on securities and extraordinary items) as a percentage of average total assets. The basic yardstick of bank profitability. Return on equity – net income (including gains or losses on securities and extraordinary items) as a percentage of average total equity capital. Risk-weighted assets – assets adjusted for risk-based capital definitions which include on-balance-sheet as well as off-balance-sheet items multiplied by risk-weights that range from zero to 100 percent. A conversion factor is used to assign a balance sheet equivalent amount for selected offbalance-sheet accounts. SAIF-insured deposits (estimated) – the amount of deposits in accounts of less than $100,000 insured by the SAIF. For BIF-member “Oakar” institutions, it represents the adjusted attributable amount acquired from SAIF members. Securities – excludes securities held in trading accounts. Banks’ securities portfolios consist of securities designated as “held-to-maturity”, which are reported at amortized cost (book value), and securities designated as “available-forsale”, reported at fair (market) value. Troubled real estate asset rate – noncurrent real estate loans plus other real estate owned as a percent of total real estate loans and other real estate owned. REGIONS Northeast — Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont, U.S. Virgin Islands Southeast — Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia Central — Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin Midwest — Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota Southwest — Arkansas, Louisiana, New Mexico, Oklahoma, Texas West — Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Pacific Islands, Utah, Washington, Wyoming FDIC Quarterly Banking Profile Second Quarter 2002 61 Notes to Users